What are the different types of stock trading?
Types of Stock trading in India- If you are is planning to trade in the stock markets, you should learn the various types of trading and choose the one that suits you.
Aug 19, 2018 10:08 IST India Infoline News Service

Types of stock trading
· Day trading
Traders who engage in day trading are called day traders. The technique of day trading is that the purchase and sale of stocks happens on the same day, i.e. all transactions are closed on the same day. This type of trading demands quick thinking and immediate action and is not suitable for beginners who are new to the stock market.
Day trading branches out into many sub-categories:
- Arbitrage
- Market Making
- Momentum day trading
- Pattern trading
- Scalping
- Swing trading
- Trending stock
· Short-term trading
This type of trading entails the trading transaction to have a shelf life of a day to a few weeks. The short trade starts by buying the financial instruments with a holding period of a day or few weeks. The trader will create a sell position in this technique.
· Medium-term trading
The trade of a few weeks to few months is known as medium-term trading. This trading indicates the stock has the potential to reach a high position in the future.
· Long-term trading
This technique of trading is mostly used for stocks that have long standing in the market. These stocks have the potential to become profitable by the day, so the holding period of these stocks ranges from few months to a few years.
There are many other different types of stock trading other than the types mentioned above, and they are:
· IPO trading
· Exchange-Traded Funds (ETF) trading
· Futures trading
· Options trading, etc.
Trading in stocks does not always guarantee high returns, but diligently learning and applying some of these techniques can help traders make consistent profits in the long run.